Seller Finance Ideas and Renting Back to Seller

[Scott Raynor]

I’ve a possible single family deal where the current owner will consider seller financing. She may either move out or actually rent from me.

What recommendations would folks have for structuring the deal if she wants to stay and rent from me?

Here are the numbers.

Purchase price $175,000

Possible rent $2000/mo

I’ve no cash to put down and obviously need to cash flow. Do I ask for interest only payments until I can get a mortgage?

Any suggestions are greatly appreciated!

[Mitch Messer]

Hi @Scott Raynor and welcome to BiggerPockets!

There is no circumstance under which I would ever buy with seller financing and then rent to the former owner, least of all in New York, where it can takes months (years?) to evict a non-paying tenant.

If you're not paying any significant cash at closing, what could motivate the seller to take a major demotion from owner down to tenant?